US regulators are going overboard, Vt. ski resort says

US regulators are going overboard, Vt. ski resort says

EB-5 Visa, EB5 Visa, EB-5 Investment

The owner of a Vermont ski resort that federal regulators allege ran a Ponzi-like scheme to defraud immigrant investors is fighting an asset freeze in court.

Ariel Quiros, the Miami-based owner of Jay Peak, said in documents filed in federal court in Florida that the Securities and Exchange Commission has been excessive in its actions against him, including last week’s freeze on his companies’ assets.

Quiros on Tuesday requested that a judge modify or lift the freeze. According to court documents, Quiros is unable to buy a cup of coffee or feed his family.

According to the SEC, Quiros and William Stenger of Newport, Vt., raised $350 million from 700 investors worldwide using the EB-5 visa program, which gives foreigners US green cards for financing job-creating projects. The SEC alleges that more than half of the money raised was misused, and that more than $50 million was “systematically looted” for Quiros’s personal use.

Quiros denies the allegations, saying that he used investor money appropriately and disclosed how the money would be used.

Most of his $200 million in net worth is tied up in assets, such as Jay Peak, which is now under a court-appointed receiver, “leaving Quiros without the ability to buy food, pay general living and business expenses and pay counsel to protect his rights,” according to court documents.

The SEC declined to comment.



  • Vermont

Securities Disclaimer

This website is for informational purposes only and does not constitute an offer or solicitation to sell shares or securities. Any such offer or solicitation will be made only by means of an investment's confidential Offering Memorandum and in accordance with the terms of all applicable securities and other laws. This website does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or any invitation to offer to buy or subscribe for, any securities, nor should it or any part of it form the basis of, or be relied on in any connection with, any contract or commitment whatsoever. LLC and its affiliates expressly disclaim any and all responsibility for any direct or consequential loss or damage of any kind whatsoever arising directly or indirectly from: (i) reliance on any information contained in the website, (ii) any error, omission or inaccuracy in any such information or (iii) any action resulting therefrom.